Used, gifted Inspiron 2600

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Hello! I am quite new to all of this only recently getting my first computer. Today someone also gave me a used Dell Inspiron 2600. I would like to get it up and going for the kids to use for school stuff. Problem is I cant seem to get into the Windows Apps. (Word, excel, etc) They dont even show when I go to "Programs" System Properties show it is running Windows XP Home Edition. I cant install xp or vista to it. On XP when I enter the key code it keeps saying the code is not valid. (which I'm not 100% sure it is) I try to run Vista and it says it must run at least XP service pack 2 or service pack 1 to install Vista. I would go online with it to get windows support but I cant even get it to go online! I'm lost and would GREATLY appreciate any "helpful" help any of you might have for me. Is there some way to just restore the factory settings and begin from scratch? Or is there a better option?
 
Well if you have a xp setup cd i would recommend put it in the cd tray reboot , reformat when asked and do a clean install of xp or vista IMO.
sounds like on vista you have the upgrade cd. clean install xp then upgrade to vista(if you want)
 
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